AB1199 - Medical staff: health care provider credentialing.

Amended IN Senate June 11, 2026 Amended IN Senate June 09, 2025 Amended IN Assembly May 01, 2025 Amended IN Assembly March 17, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1199 Introduced by Assembly Member Patterson February 21, 2025 An act to add Section 1257.55 to amend Sections 2282 and 2453 of the Business and Professions Code, and to amend Section 1275.6 of the Health and Safety Code, relating to health facilities. health care. LEGISLATIVE COUNSEL'S DIGEST AB 1199, as amended, Patterson. Hospitals: employee identification. Medical staff: health care provider credentialing. Existing law, the Medical Practice Act, establishes the Medical Board of California within the Department of Consumer Affairs and charges it with administrative and enforcement duties related to the provision of medical services under the act. The act makes unprofessional conduct subject to discipline by the board the regular practice of medicine in a specified hospital having 5 or more physicians and surgeons on the medical staff without rules established by the board of directors to govern the operation of the hospital. The act requires the rules to include a provision for the organization of physicians and surgeons into a formal medical staff with staff appointments on an annual or biennial basis. This bill would revise that provision to instead require staff reappointments at least every 3 years. Existing law requires that physician and surgeon staff require members of the staff to demonstrate their ability to perform surgical and other procedures competently and to the satisfaction of an appropriate committee or committees of the staff at the time of original application for appointment to the staff and at least every 2 years thereafter. This bill would instead require physician and surgeon staff to require members of the staff to demonstrate their ability at least every 3 years thereafter. Existing law provides for the licensure and inspection of health facilities, including general acute care hospitals and acute psychiatric hospitals, by the State Department of Public Health and makes a violation of those provisions a crime. This bill would require the governing body of a general acute care hospital or an acute psychiatric hospital to require that medical staff establish controls that are designed to ensure the achievement and maintenance of high standards of professional ethical practices, including a requirement that all members of the medical staff be required to demonstrate their ability to perform surgical or other procedures competently and to the satisfaction of an appropriate medical staff committee or committees at the time of original application for appointment to the medical staff and every 3 years thereafter. The bill would prohibit the department from requiring an acute care hospital or acute psychiatric hospital to undertake routine reappointments more frequently than every 3 years. Because a violation of this requirement would be a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Existing law requires the State Department of Public Health to license and regulate health facilities, including, among others, general acute care hospitals and acute psychiatric hospitals. A violation of these provisions is a crime. Existing law requires a health care practitioner to disclose, while working, their name and license status on a name tag in at least 18-point type, subject to specified exceptions. This bill would require general acute care hospitals and acute psychiatric hospitals, except those operated by the State Department of State Hospitals, to develop and implement a policy that requires all employees who have patient contact to wear an identification tag while on duty that contains prescribed information. By expanding the scope of a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 2282 of the Business and Professions Code is amended to read: 2282. The regular practice of medicine in a licensed general or specialized hospital having five or more physicians and surgeons on the medical staff, which does not have rules established by the board of directors thereof to govern the operation of the hospital, which rules include, among other provisions, all the following, constitutes unprofessional conduct: (a) Provision for the organization of physicians and surgeons licensed to practice in this state who are permitted to practice in the hospital into a formal medical staff with appropriate officers and bylaws and with staff appointments on an annual or biennial basis. reappointments at least every three years. (b) Provision that membership on the medical staff shall be restricted to physicians and surgeons and other licensed practitioners competent in their respective fields and worthy in professional ethics. In this respect the division of profits from professional fees in any manner shall be prohibited and any such division shall be cause for exclusion from the staff. (c) Provision that the medical staff shall be self-governing with respect to the professional work performed in the hospital; that the medical staff shall meet periodically and review and analyze at regular intervals their clinical experience; and the medical records of patients shall be the basis for such review and analysis. (d) Provision that adequate and accurate medical records be prepared and maintained for all patients. SEC. 2. Section 2453 of the Business and Professions Code is amended to read: 2453. (a) It is the policy of this state that holders of M.D. degrees and D.O. degrees shall be accorded equal professional status and privileges as licensed physicians and surgeons. (b) Notwithstanding any other provision of law, no health facility subject to licensure under Chapter 2 (commencing with Section 1250) of Division 2 of the Health and Safety Code, no health care service plan, nonprofit hospital service plan, policy of disability insurance, self-insured employer welfare benefit plan, and no agency of the state or of any city, county, city and county, district, or other political subdivision of the state shall discriminate with respect to employment, staff privileges, or the provision of, or contracts for, professional services against a licensed physician and surgeon on the basis of whether the physician and surgeon holds an M.D. or D.O. degree. This section shall not be construed to require a disability insurer health care service plan or hospital service plan to employ, offer staff privileges, or contract for professional services with a class of physician who holds an M.D. or D.O. degree. However, this subdivision shall not prohibit a school of allopathic medicine or a school of osteopathic medicine from employing a physician and surgeon as an instructor on the basis of whether the physician and surgeon holds an M.D. or D.O. degree, where the subject matter to be taught specifically requires allopathic or osteopathic training and experience. (c) Whenever the health facility staffing requirements for staff or department privileges mandate that the physician who has been granted privileges be certified or eligible for certification by an appropriate American medical board, that position must be made available on an equal basis to an osteopathic physician who is certified or eligible for certification by the appropriate American osteopathic board. (d) Whenever an entity that contracts with physicians and surgeons or osteopathic physicians to provide managed care or risk-based care requires that the physician who is responsible for the contract be certified or eligible for certification by an appropriate American medical board, the contract reference to American medical board shall be construed to mean American Osteopathic Board when the contracting physician is an osteopathic physician. (e) Staff self-government, involving M.D. and D.O. physicians and surgeons, with respect to the professional work performed in the health facility, shall be accomplished by holding periodic meetings of the staff to review and analyze at regular intervals their clinical experience. Patient medical records shall be the basis for such review and analysis. (f) The physician and surgeon staff shall be required to establish controls that are designed to ensure the achievement and maintenance of high standards of professional and ethical practices practices, including a provision that all members of the physician and surgeon staff be required to demonstrate their ability to perform surgical and other procedures competently and to the satisfaction of an appropriate committee or committees of the staff at the time of original application for appointment to the staff and at least every two three years thereafter. (g) No health facility may adopt written bylaws in accordance with legal requirements that in any way are construed to circumvent the intent of the Legislature or any other nondiscriminatory provisions contained in either the Medical Practice Act or in any provisions applicable to osteopathic physicians. (h) No entity that contracts with physicians and surgeons to provide managed care or risk-based care may adopt written bylaws in accordance with legal requirements that in any way are construed to circumvent the intent of the Legislature or any other nondiscriminatory provisions contained in either the Medical Practice Act or in any provisions applicable to osteopathic physicians. (i) For the purposes of this section, no professional medical or osteopathic association may mandate membership in their respective organizations as a prerequisite for a physician to obtain staff privileges, employment, or in the offering of a contract for services. (j) Any violation of subdivisions (b), (c), (d), (e), (f), (g), (h), and (i) may be enjoined in an action brought in the name of the people of the State of California by the district attorney of the county in which the violation occurs, upon receipt of a complaint by an aggrieved physician and surgeon. SEC. 3. Section 1275.6 of the Health and Safety Code is amended to read: 1275.6. (a) A health facility licensed pursuant to subdivision (a) or (b) of Section 1250 may provide in any alternative setting health care services and programs which that may be provided by any other provider of health care outside of a hospital building or which that are not otherwise specifically prohibited by this chapter. In addition, the state department and the Office of Statewide Health Planning and Development Department of Health Care Access and Information shall adopt and enforce standards which that permit the ability of a health facility licensed pursuant to subdivision (a) or (b) of Section 1250 to use its space for alternative purposes. (b) In adopting regulations implementing this section, and in reviewing an application or other request by a health facility licensed pursuant to subdivision (a) or (b) of Section 1250, pursuant to Section 1265, and subdivision (b) of Section 1276, relating to services provided in alternative settings, the state department may adopt or impose reasonable standards and conditions which that promote and protect patient health, safety, security, and quality of health care. (c) Pending the adoption of regulations referred to in subdivision (b), the state department may condition approval of the alternative service or alternative setting on reasonable standards consistent with this section and subdivisions (d) and (e) of Section 1275. The state department and the Office of Statewide Health Planning and Development Department of Health Care Access and Information may adopt these standards by mutual agreement with a health facility proposing a service and may, after consultation with appropriate professional and trade associations, establish guidelines for hospitals wishing to institute an alternative service or to provide a service in an alternative setting. Services provided outside of a hospital building under this section shall be subject to the licensing standards, if any, that are applicable to the same or similar service provided by nonhospital providers outside of a hospital building. The intent of this subdivision is to assure ensure timely introduction of safe and efficacious innovations in health care services by providing a mechanism for the temporary implementation and evaluation of standards for alternative services and settings and to facilitate the adoption of appropriate regulations by the state department. (d) All health care professionals providing services in settings authorized by this section shall be members of the organized medical staff of the health facility to the extent medical staff membership would be required for the provision of the services within the health facility. All services shall be provided under the respective responsibilities of the governing body and medical staff of the health facility. Nothing in this section shall be construed to This section does not repeal or otherwise affect Section 2400 of the Business and Professions Code, or to exempt services provided under this section from licensing standards, if any, established by or otherwise applicable to, the same or similar service provided by nonhospital providers outside of a hospital building. (e) For purposes of this section, “hospital building” shall have the same meaning as that term is defined in Section 15026. (e) The governing body of a general acute care hospital and an acute psychiatric hospital shall require that the medical staff establish controls that are designed to ensure the achievement and maintenance of high standards of professional ethical practices, including the provision that all members of the medical staff be required to demonstrate their ability to perform surgical or other procedures competently and to the satisfaction of an appropriate medical staff committee or committees, at the time of original application for appointment to the medical staff and every three years thereafter. The department shall not require a general acute care hospital or an acute psychiatric hospital to undertake routine reappointments more frequently than every three years. SEC. 4. No reimbursement is [Text truncated for display. Full text available on Congress.gov.]